Interest rate and monetary transmition mechanisms in Brazil.

This paper develops the hypothesis that the Brazilian interest rate is high as a result of partially obstructed monetary transmission mechanisms. Transmission failures arise due to the following characteristics of the Brazilian economy: (i) segmentation of the credit market; (ii) low penetration of...

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Detalles Bibliográficos
Autor: de Menezes Barboza, Ricardo
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2015
País:Brasil
Institución:EDITORA 34
Repositorio:Revista de Economia Política
Idioma:portugués
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/218
Acceso en línea:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/218
Access Level:acceso abierto
Palabra clave:mecanismo de transmissão monetária
taxa de juros
política monetária
monetary transmission mechanism
interest rate
monetary policy
Descripción
Sumario:This paper develops the hypothesis that the Brazilian interest rate is high as a result of partially obstructed monetary transmission mechanisms. Transmission failures arise due to the following characteristics of the Brazilian economy: (i) segmentation of the credit market; (ii) low penetration of free credit within the income determination process; (iii) truncated term structure of interest rates; (iv) participation of LFT’s in public debt; (v) participation of administered prices in the consumer price index. To achieve this result, the paper explores the BMW model and provides some preliminary evidence. JEL Classification: E40; E43; E52.